There’s a lot of discussion right now about what’s in store for investors in 2025. Will inflation continue to eat away at spending and profit margins? Will trade wars cause supply chain disruptions for businesses and consumers? Or will the 20%+ gains in each of the last two years be replicated as Wall Street continues to defy gravity in the face of gloomy headlines?
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Thankfully, long-term investors don’t need to sweat the daily grind of the news cycle. Mounds of research show that one of the most profitable ways to invest money is to stick with low-cost index funds that provide built-in diversification. This may not turn $1,000 into $1 million overnight, but it also won’t cause you to lose your shirt overnight, either. This strategy is built to reward patience and provides peace of mind as investors can focus on the years and decades ahead with long-term ETFs instead of stressing about today’s headlines.
The following list offers seven of the best long-term ETFs to buy and hold for consistent returns in 2025 (or 2035, for that matter) and beyond.
| ETF | Assets | Expense ratio |
| iShares Core S&P 500 ETF (ticker: IVV) | $609 billion | 0.03% |
| SPDR S&P Midcap 400 ETF Trust (MDY) | $24 billion | 0.23% |
| iShares Core S&P Small-Cap ETF (IJR) | $88 billion | 0.06% |
| Invesco QQQ Trust (QQQ) | $342 billion | 0.20% |
| Vanguard Dividend Appreciation ETF (VIG) | $89 billion | 0.05% |
| Vanguard Total International Stock ETF (VXUS) | $78 billion | 0.05% |
| Vanguard Total Bond Market ETF (BND) | $123 billion | 0.03% |
iShares Core S&P 500 ETF (IVV)
Assets: $609 billion Expense ratio: 0.03%
To be honest, it’s hard to pick among the leading S&P 500 index funds out there as many have huge asset hoards and rock-bottom expenses. And while IVV is not the largest of this batch, it still stands tall with more than $600 billion in assets to make it the third-largest ETF in the entire U.S. stock market — behind two other S&P index funds, the Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF Trust (SPY). No matter which of the trio you choose, you’ll be getting simple one-stop exposure to the 500 most dominant U.S. stocks, including Apple Inc. (AAPL) and Microsoft Corp. (MSFT). If you’re a long-term, low-risk investor then an S&P 500 index fund like IVV is probably the first place to start.
SPDR S&P Midcap 400 ETF Trust (MDY)
Assets: $24 billion Expense ratio: 0.23%
Another great long-term ETF is MDY, which is focused on the S&P 400 index of mid-cap stocks instead of its larger and more popular cousin. For those unfamiliar with how the index provider divides up the stock market, S&P takes the top 1,500 U.S. corporations then slices them into three tranches: the 500 largest companies making up the S&P 500, the next 400 making up the mid-cap S&P 400 index, and then the 600 coming after that representing the small-cap S&P 600.
There are more modest-sized companies in that middle tier, but they still have good name recognition. Top picks now include housewares leader Williams-Sonoma Inc. (WSM), investment platform Interactive Brokers Group Inc. (IBKR) and digital documents leader DocuSign Inc. (DOCU). Since tech stocks tend to grow quickly and dominate the S&P 500 index, the sector breakdown is much different in this mid-cap index, with industrials leading at 21% of assets followed by financials at 18%. The mid-sized companies in MDY have an average market cap of around $10 billion and have the potential to grow into tomorrow’s leaders — making this a good long-term ETF to buy now.
iShares Core S&P Small-Cap ETF (IJR)
Assets: $88 billion Expense ratio: 0.06%
Another great long-term ETF rounds out the trio of S&P 500 index funds with a focus on the smallest benchmark, the S&P 600 index of small-cap stocks. The average market cap of the holdings is around $3 billion, making these companies a bit riskier but also giving them much more room to run if and when things go well. Consider top stocks right now such as Hims & Hers Health Inc. (HIMS), a personal care startup that has charged into households very quickly and seen shares soar more than 420% in the last 12 months as a result. Small-cap stocks can admittedly be more exposed when the market sours, so there is the potential for short-term pain if things get rocky on Wall Street. That said, the potential of HIMS shows why investors may want to consider buying and holding some small caps as a portion of their portfolio.
Invesco QQQ Trust (QQQ)
Assets: $342 billion Expense ratio: 0.2%
Another long-term ETF with a growth focus, the Invesco QQQ Trust is tied to the Nasdaq-100 index of the 100 largest non-financial stocks listed on the tech-heavy Nasdaq. That means Apple, Nvidia Corp. (NVDA), Microsoft and Amazon.com Inc. (AMZN) make up the top four holdings — and thanks to a weighting based on market value, more than half of all assets are in the technology sector. Investors should be aware of this bias, as the QQQ ETF is definitely less diversified than some of the other alternatives on this list. That said, if you’re interested in the long-term growth potential of technology mega caps, then this ETF is a simple one-stop shop to tap into the top stocks in this sector. It’s probably wise to balance out this tech focus with other positions in your portfolio, however.
Vanguard Dividend Appreciation ETF (VIG)
Assets: $89 billion Expense ratio: 0.05%
Speaking of balancing things out, VIG is the most popular fund on Wall Street for investors interested in low-risk income potential rather than rapid share price gains. It ranks as one of the 15 largest U.S. ETFs of any kind, and is the largest dividend stock ETF as ranked by assets under management. The approach is simple, as this Vanguard fund tracks an index of companies that have above-average dividend payouts compared to the broader market and a track record of steady dividend growth. VYM currently delivers a 1.7% yield, almost 0.5 percentage points higher than the S&P 500 at present — and top holdings include well-known and stable dividend payers like JPMorgan Chase & Co. (JPM), Apple and Broadcom Inc. (AVGO). For long-term dividend growth, VIG is a fine ETF to buy and hold.
Vanguard Total International Stock ETF (VXUS)
Assets: $78 billion Expense ratio: 0.05%
Another diversification strategy that long-term investors should consider is looking abroad to balance out U.S. holdings with international companies. The Vanguard Total International Stock ETF is a leading long-term ETF to consider for this approach as it gives investors access to more than 8,500 stocks headquartered in foreign markets around the world — but not a single share of U.S. based corporations.
While these stocks are not constituents of domestic indexes like the S&P 500, they are indeed well-established and familiar. Top holdings right now include Asian tech firm Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), German IT giant SAP SE (SAP) and Danish diabetes specialist Novo Nordisk (NVO), among others. The geographic breakdown includes Japan at 16%, the United Kingdom at 10%% and China at 8% of assets for the leading regions of influence. In the long run, a global approach can smooth out your risk, so an “ex-U.S.” fund like this Vanguard option may be worth considering as a long-term ETF to buy and hold.
Vanguard Total Bond Market ETF (BND)
Assets: $123 billion Expense ratio: 0.03%
Looking beyond just stocks, the Vanguard Total Bond Market ETF is the most popular long-term ETF for investors interested in investment-grade bonds. It offers diversified exposure to the bond market in one simple and broad-based fund, with an enormous portfolio of almost 18,000 bonds from the most credit worthy entities. Right now, about 68% of total assets are in U.S. government bonds, with the remainder in bonds rated BBB and higher. If you’re a long-term, hands-off investor then this one-stop holding provides exposure to the entirety of the domestic bond market without a lot of risk or complexity. It also yields a hefty 4.6% right now — more than three times the S&P 500 — thanks to a comparatively higher interest rate environment than in previous years.
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7 Best Long-Term ETFs to Buy and Hold originally appeared on usnews.com
Update 02/21/25: This story was previously published at an earlier date and has been updated with new information.
